ATLANTA - Carter's, Inc. (NYSE: NYSE:CRI), a leading North American marketer of children's apparel, announced the retirement of Chairman and CEO Michael D. Casey after a tenure of over 15 years. Richard F. Westenberger, who has been with the company since 2009, will serve as interim CEO while retaining his roles as Senior EVP, CFO, and COO. The changes, including the appointment of William J. Montgoris as Non-Executive Chairman, are effective immediately. According to InvestingPro data, Carter's maintains a "GOOD" overall financial health score, with strong profitability metrics including a 48.3% gross margin.
Casey will remain in an advisory capacity until February 28, 2025, to facilitate a smooth leadership transition. The company has engaged Egon Zehnder in a search for a new CEO, focusing on external candidates.
During Casey's leadership, Carter's saw significant growth and market leadership consolidation in children's apparel through new brand introductions and distribution channels expansion, including retail, eCommerce, and international businesses. Montgoris expressed gratitude for Casey's contributions and anticipates the next CEO to continue the company's trajectory of growth and value creation.
Carter's reaffirmed its fiscal year 2024 financial outlook, as previously disclosed on October 25, 2024. The company expects to report its Q4 and full-year 2024 results in February, pending the completion of standard year-end financial procedures and external audit. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with a favorable P/E ratio of 8.7. For detailed insights and additional ProTips about Carter's financial position, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The company, headquartered in Atlanta, Georgia, is renowned for its Carter's and OshKosh B'gosh brands, available in over 1,000 operated stores in the U.S., Canada, and Mexico, and online. It also supplies young children's apparel to major North American retailers and offers exclusive brands at Walmart (NYSE:WMT), Target (NYSE:TGT), and Amazon.com (NASDAQ:AMZN). The company maintains a strong liquidity position with a current ratio of 2.21, indicating robust ability to meet short-term obligations.
The forward-looking statements in the press release involve risks and uncertainties that could impact actual results. These include factors like Casey's retirement, the CEO search, economic conditions, consumer spending habits, inflation, supply chain constraints, and geopolitical conflicts. The company disclaims any obligation to update forward-looking statements unless required by federal securities laws.
This article is based on a press release statement from Carter's, Inc.
In other recent news, Carter's, Inc. reported third-quarter fiscal 2024 earnings that surpassed its prior guidance, with net sales of $758 million and an operating income of $77 million. Despite a challenging retail environment, the company has managed to implement strategic investments in pricing and marketing to bolster sales trends, particularly in the baby segment. In a recent adjustment, Citi upgraded Carter's stock from Sell to Neutral, reflecting the anticipated sales and margin pressures the company is expected to face in fiscal year 2025. Carter's has also forecasted total sales for the year to reach approximately $2.8 billion, with U.S. retail expected to contribute around 50%. The company has invested $40 million in price reductions and $10 million in brand marketing, and paused share repurchases, returning $138 million to shareholders through dividends and repurchases this year. Despite a decline in order demand and an increase in cancellations, particularly among department store customers, Carter's remains optimistic about their growth strategies. These are the latest developments in Carter's recent business operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.